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March 28, 2022 HB 22-1342
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0986
Rep. Herod; Ransom
Sen. Hansen; Rankin
Date:
Bill Status:
Fiscal Analyst:
March 28, 2022
House Appropriations
Greg Sobetski | 303-866-4105
Greg.Sobetski@state.co.us
Bill Topic: STATE EMERGENCY RESERVE CASH FUND
Summary of
Fiscal Impact:
☐ State Revenue
☐ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
Budget package bill. The bill transfers interest earned on federal funds received
through the federal American Rescue Plan Act to the State Emergency Reserve Cash
Fund. It is expected to cause transfers of diminishing amounts between FY 2021-22
and FY 2026-27.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, which was recommended by the Joint
Budget Committee as part of its FY 2022-23 budget package.
Table 1
State Fiscal Impacts Under HB 22-1342
Current Year
FY 2021-22
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - - -
Expenditures
- - -
Transfers Other Cash Funds
($31.2 million)
($21.0 million)
($14.0 million)
Emergency Reserve Fund $31.2 million $21.0 million $14.0 million
Net Transfer $0 $0 $0
Other Budget Impacts - - -
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March 28, 2022 HB 22-1342
Summary of Legislation
The bill requires that any interest and income derived from deposits and investments of federal funds
received through the federal American Rescue Plan Act (ARPA) be transferred to the State Emergency
Reserve Cash Fund. It applies to interest earned on federal ARPA funds in:
the ARPA cash fund;
the Revenue Loss Restoration Cash Fund;
the Economic Recovery and Relief Cash Fund;
the Workers, Employers, and Workforce Centers Cash Fund;
the Behavioral and Mental Health Cash Fund;
the Affordable Housing and Home Ownership Cash Fund;
the Eviction Legal Assistance Fund;
the Colorado Opportunity Scholarship Initiative Fund;
the Victims and Witnesses Assistance and Law Enforcement Fund;
the Housing Development Grant Fund;
the Colorado Heritage Communities Fund;
the Broadband Administrative Fund;
the Colorado Startup Loan Program Fund; and
the Colorado Domestic Abuse Program Fund.
Background
ARPA funds. Colorado received $3.83 billion in federal funds disbursed from the Coronavirus State
Fiscal Recovery Fund under ARPA. These funds are required to be obligated for purposes identified
in federal law by December 31, 2024, and expended for those purposes by December 31, 2026. After
accounting for legislation passed during the 2021 legislative session, and the supplemental budget
bills passed during the 2022 legislative session, $1.26 billion has been obligated, and $2.57 billion
remains available for future appropriation or transfer.
State Emergency Reserve Cash Fund. Expenditures from this fund may be authorized only in the
event of a declared emergency, as required under the Colorado Constitution’s TABOR Amendment.
The fund is included as part of the TABOR emergency reserve in the head note of each year’s Long
Bill.
State Transfers
Based on projected interest earnings on federal ARPA funds through June 30, 2022, the bill is expected
to transfer $31.2 million from various cash funds to the State Emergency Reserve Cash Fund in the
current FY 2021-22. This estimate includes $21.5 million in interest earnings through February 2022,
plus $9.7 million in expected earnings over the final four months of FY 2021-22. Transfers for later
years will depend on the outstanding principal amount and interest rates, but are expected to decline
over time as the principal amount is spent. Assuming that about one-third of the principal amount is
spent each year, this fiscal note estimates transfers of $21.0 million and $14.0 million in FY 2022-23 and
FY 2023-24, respectively. Actual transfers will largely depend on future legislative decisions.
Transfers will cease after FY 2026-27, when all ARPA funds will have been expended as required
under federal law. Page 33
March 28, 2022 HB 22-1342
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State and Local Government Contacts
Joint Budget Committee Staff Office of State Planning and Budgeting Personnel
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.